Just a "wall" away! America may be the next gold mine for cross-border people

The US market is so competitive, it’s time for sellers to shift their attention. For example, America’s good neighbor Mexico is a good choice.

Data shows that online sales in Mexico grew 80% in 2020 and have since maintained annual growth of more than 20%.

Under this trend, corner stores, laundromats and office supply stores have become essential intermediaries between online consumers and large e-commerce companies.

When e-commerce really started to take off in Mexico in 2015, companies like MercadoLibre and Amazon quickly realized that its logistics infrastructure was underdeveloped.

For example, Mexico's national postal service offers nationwide coverage and is very cheap, but it often has problems. On the other hand, couriers like UPS or DHL also have a large network of pick-up and drop-off points, but their prices are high - almost five times that of the postal service.

Therefore, e-commerce giants such as Amazon decided to develop their own express delivery services. However, the logistics network of e-commerce companies cannot reach every corner of Mexico, so it is necessary to cooperate with various small local stores.

In vast suburbs and rural or remote areas, the addresses of these places are often not very accurate or cannot be found at all on satellite navigation maps. At this time, if a local store can be developed into a collection point, many troubles can be solved.

At that time, Mexican online shoppers will be able to choose these small stores as the delivery address when placing orders, and they can also complete returns through these stores.

Recently, Amazon has also been promoting a similar service in the United States, which is to cooperate with local mom-and-pop stores to complete the last mile delivery.

From the perspective of industry insiders, this trend shows that Mexico's e-commerce economy is developing rapidly, which also means that there will be more opportunities in this fertile land.

Rather than competing with peers in the U.S. and European markets with constantly low prices, finding the next blue ocean market is what sellers should focus on most right now.

Mexico

E-commerce

Amazon